2017

2017
ANNUAL REPORT 2017
Publisher
AKM Autoren, Komponisten und Musikverleger reg. Gen. m.b.H.

Baumannstraße 10, 1030 Wien

Address: Postfach 259, 1031 Wien
Tel: +43 (0) 50717-0
Fax: +43 (0) 50717-19199
E-Mail: direktion@akm.at
Internet: www.akm.at

The cooperative is registered in the commercial register of the

Commercial Court of Vienna under registration number FN 95866f.

Business year
Calendar year 2017

Authorization
By public announcement of the Ministry of Education on 31 August 1946, BGBI 193,
consolidated version as per KommAustria’s decision KOA 9.102/08-015 dated 30 June 2008,
and the decision of the Copyright Senate, UrhRS 5/08-4 dated 29 October 2008, as well as
the decision of the Supervisory Authority for Collective Management Organisations dated
18 October 2016 (AVW 9.110/16-002), AKM was granted permission to administer the copyrights
of composers, authors and music publishers as Collective Management Organisation as
defined by the act on Collective Management Organisations.

State supervision
By law, Collective Management Organisations are subject to regulatory supervision which is
exercised by the Supervisory Authority for Collective Management Organisations based in the
Ministry of Justice.

Editor
Susanne Lontzen

Graphic-Design
Christian Modlik

Pictures
Eva Kelety Photography
Grünwald
Contents
05 Letter from the General Manager
06 Highlights 2017
07 Business Development
License Revenues
Expenses and Admin Rate
Distribution Sum
13 Our Members
Beneficiaries
Works Registration
Distribution
16 Social Benefits
18 About Us
22 Financial Statements
Balance Sheet
Profit and Loss Statement
26 What We Do
Mission Statement
2017
2017
 Gernot
Graninger
General Manager

2017
2017

04
Dear
members
of AKM,
dear readers,
2017 was another successful year for AKM. Among the highlights of our business development is the increase
of revenues by 4.9 % to EUR 113 million and of the distribution sum to EUR 98.3 million. With an admin rate of
9.76 % AKM managed to keep its administrative cost under 10 % for the third consecutive year, maintaining its
best in class position in terms of efficiency as Collective Management Organisation. This is both a reason to
celebrate and motivation to keep moving forward, always your best interests in mind.

Although the new Collective Management Organisations Act has been in force since 2016, there were numerous
adjustments and changes to be made in the course of the year that have an impact on daily business. Among
other things, a transparency report was published and complaints management was introduced.

Our lobbying efforts around Transfer of Value continue. Although an amended text of the regulation was adopted
by the European Parliament, which allowed for trialogue talks between the Commission, the EU Parliament and
the EU Council, no agreement has yet been reached. We will continue to work actively to promote fair rules and
fair pay for creators in the online sector, and seek support from our members as needed, e. g. in another petition.

Within AKM, numerous projects have been started or implemented in order to further improve efficiency.
This includes the refurbishment of the building at Baumannstrasse 8 as well as the optimization of our online
services enabling automated, works-related licensing and accounting of repertoire usage. Particularly pleasing
for you as a beneficiary is the IT-technical implementation of the quarterly ORF radio billing, which enables
an even faster distribution.

Numerous factors are crucial to achieve such a successful result and to drive positive developments. At this
point, however, I would like to emphasize the commitment of the employees of AKM, who are working tirelessly
in all areas of the company and who, with their specific know – how, contribute significantly to making AKM
the efficient company it is today.

In this spirit, we will continue to work for you, our members, as a service-oriented company, mastering the
current and new challenges in the best possible way and strengthening our position in a difficult business
environment.

Yours truly,
Gernot Graninger
General Manager

05
 Highlights
Revenues
increased by 4.9 % to
EUR 113 million.
Revenues

2015 105.3
2016 107.7 / +2.3 %
2017 113.0 / +4.9 %
100 m €

At 9.76 %, AKM managed to keep its

admin rate
below 10%
for the third consecutive
year and maintains its
best in class position in terms of efficiency.
Admin rate

12.02 %
10.96 % 9.76 %
9.92 % 9.75 %

5%
2013 2014 2015 2016 2017

Distribution sum 2017 +4.2 %

In 2017, the amount to be distributed to beneficiaries totals € 98.3 million and is
€ 3.9 million (+4.2 %) higher than previous year.

06
Business
Development
Business Scope

AKM stands for authors (A), composers (K) and music publishers (M). AKM is a Collective Management Organisa-
tion according to the Austrian law on Collective Management Organisations. Based on the authorization granted
by the Austrian Supervisory Authority for Collective Management Organisations, AKM administers the perfor-
ming rights, broadcasting rights and provision rights in musical works with or without text from composers,
authors, their legal successors and music publishers.

AKM grants all users the licenses required for the use of music, collects license fees and distributes the royalties
among the entitled authors, their legal successors and music publishers.

AKM administers the exploitation rights of its members not only in Austria but almost all over the world through
reciprocal agreements with 78 foreign sister societies. This ensures that the beneficiaries of AKM receive their
royalty share for the use of their works abroad. In addition, AKM also provides collection services for other Aust-
rian collecting societies in their name and on their behalf.

Besides its main purpose, the licensing and settlement of royalties, AKM fulfils important social and cultural
tasks in favour of its beneficiaries.

License Revenues
2017 was an economically successful year for AKM. Total revenues increased by 4.9% to EUR 113.228 million.
Foreign license revenues contributed disproportionally to this increase with 13.7%. Domestic revenues increased
by 3.8%. Revenues in the area of live performances and television broadcasts as well as from the online sector
were well above the previous year‘s figures. An overview of the financial performance indicators is shown in the
following table.

2017 m € 2016 m € %-Change vs PY

License revenues domestic and foreign 108.366 103.320 4.9
Other revenues 4.624 4,374 5.7
Revenues total 112.991 107.694 4.9
Other income 0.237 0.205 15.7
Total 113.228 107.899 4.9
Expenditure 15.103 14,211 6.3
Financial result 0.203 0.700 –70.9
Distribution sum 98.328 94.387 4.2

07
 2017
Georg
Linhart
Business Unit Licenses

”Wherever music is played,

2017
the AKM staff of the Licensing
Business Unit are active and
ensure that the rights of our
members are safeguarded.
In 2017 we licensed more
than 180,000 events.“

08
License revenues total, Split by types of use

2017 m € 2016 m € %-change vs PY

Live performances 20.597 19.961 3.2
Performances from audio carriers 30.131 29.374 2.6
Television 17.436 16.610 5.0
Radio 14.099 13.827 2.0
Cable retransmission 10.988 10.591 3.8
Online 1.924 1.352 42.3
License revenues domestic 95.176 91.714 3.8
License revenues foreign 13.190 11.606 13.7
License revenues total 108.366 103.320 4.9

Licenses revenues development

License revenues domestic (m €) License revenues foreign (m €)

2013 85.923 2013 95.360

2014 87.554 2014 98.138
2015 90.211 2015 100.973
2016 91.714 2016 103.320
2017 95.176 +3.8 % 2017 108.366 +4.9 %
80,000 90.000

Licenses
When copyrighted music is presented outside the private sphere, it is considered a „public performance“.
The event organizer or company needs a license which is issued by AKM.

One time events

4,221
6,328 Frühschoppen
Ballroom dances
15,237
Fairs
33,195
Concerts
3,653
Carneval
5,049
Clubbings
& Discos

09
 Permanent License
Our customers with permanent license use the positive effect of music in their outlets. These include:

18,309
7,827 Accommodations
Taverns 4,309
401 Restaurants 8,224
Discos/Dance cafes Retail outlets
Music is an integral part of radio and TV programs as well as online services.

81 Radio programs 155 Movie theaters

107 TV programs
150 Cable networks 117 Webradios

Foreign license revenues per country/organisation

Traditionally, the highest foreign revenues come from German speaking neighbouring
countries Germany and Switzerland.

Payments to foreign Collective Payments from foreign Collective

Management Organisations / TOP 10 Management Organisations / TOP 5
Country Organisation 2017 m € Land Gesellschaft 2017 m €
Germany GEMA 6.653 Germany GEMA 12.346
Switzerland SUISA 2.373 USA ASCAP, BMI 7.943
France SACEM 0.679 United Kingdom PRS 4.653
Italy SIAE 0.600 France SACEM 1.521
United Kingdom PRS 0.372 Italy SIAE 0.756
Japan JASRAC 0.309
USA ASCAP, BMI 0.260
Netherlands BUMA 0.223
Denmark KODA 0.186
Hungary ARTISJUS 0.166

Expenses
In the year under review, expenses totaling EUR 15.103 million were significantly higher than in the previous year
(+ 6.3 %). The detailed analysis shows that personnel expenses are EUR 481,000 (+ 5.7 %) higher than in the
previous year. In the previous year a change in calculation methods and the elimination of pension obligations
resulted in extraordinary income, which led to particularly low expenses in this area and was no longer incurred
in the year under review. The 12.2 % increase in depreciation and amortization expense is attributable to the
commissioning of the Baumannstrasse 10 office building in the first quarter of 2017, as well as higher depreciati-

10
on of IT software. The financial result fell by 70.9 % due to the persistently low interest rates and the write-up on
financial assets included in the previous year.

Admin rate
The central indicator for the cost-effectiveness of a collecting society is the admin rate. For the third year in a
row, AKM has managed to keep this rate below 10 %. With an admin rate of 9.76 %, AKM is the most efficient
collecting society.

AKM managed to keep its admin rate below 10%

for the third consecutive year.

Development admin rate

2013 12.02 %
2014 10.96 %
2015 9.92 %
2016 9.75 %
2017 9.76 %

Distribution sum
The most important indicator for the rights holders is the distribution sum of the respective year.

The increase in income from license fees (+4.9 %) and the low admin rate (only 9.76 %) also had a positive effect
on the total. The amount to be distributed for 2017 increased by an encouraging 4.2 % to EUR 98.328m (previous
year: EUR 94.387m).

More royalties for rights holders.

Distribution sum increased by 4.2%.

Development of distribution sum

% increase vs PY +4.2 %

+2.7 %
+3.2 %
+3.6 %
+3.4 % +0.5 %

2012 2013 2014 2015 2016 2017

11
 2017
Tamara
Herker

2017
Members Department

”A high level of service for

our members is in the focus
of all our activities. It‘s not
only about what we do, but
more importantly about
how we do it.“

12
Our
members
Beneficiaries

More than 23,700 authors and music publishers joined AKM already. In the year under review, a further
1,075 composers, text authors and music publishers decided to entrust their exploitation rights to AKM
and benefit from our high service level.

Statistics of AKM beneficiaries* 2017

(as per 31 Dec 2017)

21,449 Authors
1,582 Legal successors
711 Music publishers
23,742 Total
* AKM beneficiaries = all of the above who have signed a rights administration agreement with AKM. As of 31. 12. 2017,
there are 582 full members of AKM (members of the cooperative) of whom 527 are authors and 55 are publishers.

Gender split

15.5 % 84.5 %

13
 Works registration
Within the last five years, the number of works submitted has increased
by 50 % to more than 1.5 million.

Works registration from AKM beneficiaries

2008

2011

2012

2014

2016

2017

250,000 500,000 750,000 1,000,000 1,250,000 1,500,000

Distribution
to beneficiaries
The table shows the split of the distribution sum 2017 to the beneficiaries.
95% of all beneficiaries receive up to EUR 5,000 each.

84.3 % up to 1,000 €

11.
2. 28 %
0.
27 15 1,00
% % 0–5
0.

10
17

,0 5 ,00
0
%

00 ,00 €
10

–5 0–
0,
00

0, 10
00 ,00
0€

0€ 0€
an
d
m
or

14
e
2017 2017
Barbara
Bastirsch
Business Unit Royalties

”My team and I stand for the

quick and correct distribution of
royalty income to our members.
The transition to quarterly
ORF radio distribution is another
important milestone.“

15
 Social
benefits
AKM is committed to social and cultural values and plays an important role in these areas in favour of its be-
neficiaries. The statute stipulates that up to 10 per cent of the distribution sum can be provided for social and
cultural purposes, the corresponding distribution rules are decided in the General Members Meeting.

Promotion of Austrian music

AKM contributes significantly to the promotion of Austrian music and does so on a broad basis. A big part of the
promotional activity has always been the promotion of concerts and ensembles with a focus on performances of
works by living AKM beneficiaries. Substantial funding is provided for associations that operate in the interest of
the beneficiaries of AKM, such as ÖKB (Austrian Composers‘ Union), VOET (Association of Austrian Text Authors)
or VÖV (Association of Austrian Folk Music Composers). Major projects include the Austrian Music Fund (ÖMF)
and project pop!. The ÖMF is an initiative for the promotion of professional Austrian music productions aiming to
spread and increase distribution of domestic repertoires and to strengthen Austria as a creative hub.

Targeted measures are taken to increase the significance of copyright in the public mind, for example the award
for Songwriter of the Year at the Amadeus Austrian Music Award.

Cultural support is handled by the AKM subsidiary GFÖM (Society for the Advancement of Austrian Music). The
support measures are carried out by GFÖM in accordance with the funds made available by AKM and in compli-
ance with the guidelines for cultural institutions adopted by the AKM General Members Meeting. The manage-
ment of GFÖM, consisting of nine members of the AKM board, decides on the allocation of funds. In the year
under review, AKM provided EUR 797,000 funding to GFÖM and more than 120 applications were approved.

Social benefits
In the year under review, AKM spent an amount of EUR 5.7 million on social benefits for old-age provision and
surviving dependants as well as one-time or ongoing benefits in eligible cases. Applications for social benefits
are reviewed in the Social Committee and presented to the Management Board for decision.

16
 2017
Folkshilfe
2017

2018 Winner of the Amadeus Austrian Music Award „Songwriter of the Year “
From left: Florian Ritt, Gabriel Fröhlich, Paul Slaviczek

”For us, this award is a great tribute to our work

of the last 5 years. We are glad to be part of such
a diverse music landscape in Austria and that AKM
supports such a prize.“

17
 About
us
AKM is organized as a cooperative and belongs to the authors, composers and
music publishers. The bodies of AKM are composed according to the basic idea of
self-administration of the right holders and consist exclusively of rights holders.
The Management Board and Supervisory Board are elected from their midst
every five years by the General Members Meeting.

Management Board
and Supervisory Board
Management Board
The Board elected by the General Members Meeting consists of four members each of the authors,
composers and music publishers group.

In the year under review the Board consisted of the following members::

Authors
Johann Ecker, Vice President
Horst Chmela
Victor Poslusny
Adam Stassler

Composers
Robert Opratko, President
Peter Vieweger, Vice President
Paul Hertel
Peter Janda

Music publishers
Edith Michaela Krupka-Dornaus, Vice President
Clemens Brugger
Christian Kobel
Astrid Koblanck

The Management Board as a collective body and on its behalf the General Manager runs
the business according to the statute of AKM.

18
Organisation chart
General Members Meeting

Management Board Supervisory Board

General Manager

Supervisory Board
The Board elected by the General Members Meeting consists of two members each of the authors,
composers and music publishers group.

In the year under review the Board consisted of the following members:

Authors
Hermi Lechner-Fasching, 2nd deputy Chairwoman
Werner Marinell

Composers​​
Richard Dünser, Chairman
Kurt Brunthaler

Music publishers
Helmuth Pany, 1st deputy Chairman
Horst Bichler

Delegates from the works council:

Siegfried Flenreisz
Romana Herker
Monika Valenta

Commissions
AKM has some statutory commissions, such as the Program Review Commission and the Musical Grading
Committee. The members of all commissions are also elected by the General Members Meeting.

19
 Business units
and employees
General Manager: Gernot Graninger
Number of employees (31. 12. 2017): 150

The number of employees at the end of 2017 has risen by one to 150 compared to the previous year (of which
4 are on parental leave). The average number of employees (converted to full-time employment) is 136, as in the
previous year.

There are 95 employees working at the head office in Vienna, 54 in the nine branches (including the Vienna
office), plus 1 marginal employee. The offices of AKM are located in the state capital of the nine federal states
and are part of the Business Unit Licenses.

The Business Unit (BU) Licenses grants licenses to music users and collects license fees. The Business Unit New
Media is responsible for the licensing of online usage. The Business Unit Royalties distributes the royalty income
to authors, their legal successors and music publishers. The accurate mapping of business transactions and
accounting is handled by the Business Unit Finance. The Business Unit Information Technology provides the
necessary IT infrastructure. The administrative departments reporting to the General Manager take care
of Members, Corporate Communications and Legal matters.

From left: Roman Oslansky, Susanne Lontzen, Paul Fischer, Gernot Graninger, Georg Linhart,
20 Barbara Bastirsch, Franz Grabensteiner (Austro mechana), Ingrid Polak, Arno Obrietan
Organisation chart

2017
Gernot Graninger
General Manager

Tamara Herker Paul Fischer

2017
Members Legal

Susanne Lontzen
Corporate
Communications

Georg Linhart Ingrid Polak Barbara Bastirsch Roman Oslansky Arno Obrietan
BU Licenses BU New Media BU Royalties BU IT BU Finance

21
 Financial Statements
Balance sheet as at December 31, 2017
Figures of previous year in EUR ‘000s

Assets 31/12/17 31/12/16

EUR EUR ‘000
A) Fixed Assets
I) Intangible Assets
1) Software and Licenses 1,542,249.57 2,203
2) Progress Payments 124,721.93 107
1,666,971.50 2,310
II) Tangible Assets
1) Land and Buildings 7,638,021.08 4,507
2) Other fixed Assets, Tools and Equipment 941,239.50 615
3) Assets under construction 947,245.49 2,845
9,526,506.07 7,967
III) Financial Assets
1) Investments in Subsidiaries 54,504.42 55
2) Other Investments 419.00 0
3) Securities 19,130,037.60 19,078
19,184,961.02 19,133
30,378,438.59 29,410
B) Current Assets
I) Accounts Receivable and other Assets
1) Receivables from Trade 11,224,731.09 9,564
thereof payable after more than one year 0.00 0

2) Receivables from Members 1,623,097.81 1,626

thereof payable after more than one year 0.00 0

3) Other Receivables and other Assets 372,407.38 506

thereof payable after more than one year 102,835.22 111
13,220,236.28 11,697
II) Cash in Hand, Cash at Bank 63,697,352.66 63,565
76,917,588.94 75,262

C) Prepaid Expenses and deferred Charges

1) Other prepayments 123,370.24 75
123,370.24 75
107,419,397.77 104,746

22
Balance sheet as at December 31, 2017
Figures of previous year in EUR ‘000s

Liabilities 31/12/17 31/12/16

EUR EUR ‘000
A) Equity
I) Stockholders Equity
1) Stockholders remaining 4,225.32 4
thereof paid: € 4,225.32, 2016: 4
2) Stockholders leaving 50.82 0
thereof paid: € 50.82, 2016: 0
4,276.14 4

II) Unappropriated Income 0.00 0

thereof income brought forward € 0,00, 2016: 0
4,276.14 4
B) Provisions
1) Provisions for Severance Payments 2,043,000.00 2,003
2) Provisions for Pensions 3,825,000.00 3,830
3) Other Provisions 908,000.00 839
6,776,000.00 6,672
C) Liabilities
1) Accounts Payable from Trade 3,789,955.65 4,812
thereof payable within one year 3,789,955.65 4,812

2) Accounts Payable from Appropriated Royalties 2,756,617.50 2,560

thereof payable within one year 2,756,617.50 2,560

3) Accounts Payable to Affiliated Companies 492,558.64 474

thereof payable within one year 492,558.64 474

4) Other Liabilities 5,657,835.72 5,703

thereof payable within one year 5,546,268.27 5,631
thereof payable after more than one year 111,567.45 72

thereof liabilities from taxes 2,188,084.28 2,369

thereof payable within one year 2,188,084.28 2,369
thereof liabilities from social security 163,920.56 158
thereof payable within one year 163,920.56 158
5) Accounts Payable from Unappropriated Royalties 103,312,154.12 101,950
thereof payable within one year 103,312,154.12 101,950
6) Less Prepayments of Unaproppriated Royalties -15,370,000.00 -17,430
100,639,121.63 98,070
thereof payable within one year 100,527,554.18 97,998
thereof payable after more than one year 111,567.45 72
107,419,397.77 104,746

23
 Financial Statements
Statement of Income 2017
Figures of previous year in EUR ‘000s
2017 2016
EUR EUR ‘000
1) Sales Income
a) Domestic Income 95,175,710.77 91,714
b) Income from abroad 13,190,419.18 11,606
c) Other Income 4,624,418.00 4,374
112,990,547.95 107,694
2) Other Operating Income
a) Income from the Disposal of Fixed Assets
other than Financial Assets 28,899.58 11
b) Income from the Reversal of Provisions 12,111.76 56
c) Other Operating Income 196,322.28 138
237,333.62 205
3) Personnel Expenses
a) Salaries -6,257,135.16 -6,104
b) Expenses for Social Security
ba) Expenses for Severance Payments and Payments
for Severance Funds -185,563.69 -313
bb) Expenses for Pensions -599,077.70 -124
bc) Expenses for Statutory Social Security Contributions and
pay-related Levies and Compulsory Contributions -1,685,390.78 -1,670
bd) Other -171,267.20 -166
-2,601,299.37 -2,274
-8,858,434.53 -8,377
4) Depreciation and Amortisation
a) Despreciation and Amortisation on Intangible and Fixed Assets
other than Financial Assets -1,627,264.40 -1,450
5) Other Operating Expenses
a) Taxes other than Taxes on Income -13,897.41 -9
b) Other Operating Expenses -4,603,855.14 -4,375
-4,617,752.55 -4,384
6) Subtotal of lines 1 to 5 (Earnings before Interest and Tax) 98,124,430.09 93,688
7) Income from Securities shown under Financial Assets 21,667.96 33
8) Other Interest and Similar Income 129,830.93 283
9) Income from the Write-Up of Financial Assets 59,000.00 384
10) Expenses from Financial Assets -6,996.00 0
11) Interest and Similar Expenses -161.15 0
12) Subtotal of lines 7 to 10 (financial success) 203,341.74 700
13) Net Income = Royalties to be appropriated 98,327,771.83 94,387
14) Beneficiaries Claims -98,327,771.83 -94,387
15) Annual Surplus = Net Profit 0.00 0.00

24
2017 2017

Roman
Oslansky
Business Unit
Information Technology

”We rely on modern technologies

to improve efficiency in all areas.
Our web services are already
used regularly by 30 % of our
members, many even monthly,
and the trend is rising!“

25
 What we do
AKM
> is the largest Collective Management Organisation in Austria,
> acts as trustee and assures rights and claims
of music authors and publishers,

> is organized as a cooperative and belongs to the text authors,

composers and music publishers,
> represents the rights of more than 23,700 members in Austria and via
reciprocal representation agreements with international affiliates of millions of
copyright holders around the world.

AKM provides services for

music creators and music users
> Music authors and music publishers
receive their royalties through AKM, if their music
is publicly performed or broadcast or made available on the Internet/mobile network.

> Music users (event organizers etc.) can acquire the required license
for these music uses for almost the entire world repertoire of protected music
centrally at AKM.

AKM passes all revenues to the

music authors and publishers.
> Royalties are settled according to fixed rules.
> Before distributing all revenues, only the operating expenses incurred are deducted. AKM is
AKM is not profit oriented.

> As part of its social and cultural tasks and in accordance

with its guidelines, AKM provides social benefits to its beneficiaries and promotes
Austrian music productions.

26
Our mission
Our professional expertise ensures
the quality of our service.
Customer relationship is our key objective.

We focus on flexibility
and cost awareness.

2017
Our actions are driven by self-confidence
and appreciation of our partners.

We are clear in our communication, open

and honest in our actions and consistent
in our implementation.

Our international orientation is

of great importance to us.

We feel committed to social

and cultural values.
2017

27
AUTOREN I KOMPONISTEN I MUSIKVERLEGER